Small Business

States With Small Businesses Most Affected by Government Shutdowns in 2019

The government shutdown means the SBA's activities are on hold for the time being. We analyzed how small businesses in different states would be impacted.

The Small Business Administration (SBA) is probably best known for its 7(a) small-business loans. Since 2010 the nation has seen over $177 billion in SBA 7(a) loans issued, more than 472,000 7(a) loans approved, and 5 million jobs supported by those issued loans. SBA loans are competitively priced, which makes them one of the most popular financing options for small businesses in the U.S. However, the current government shutdown means SBA 7(a) loan applications aren't being processed. We analyzed SBA data to see how small businesses across each state would be affected.

States Most Affected by Shutdown

To determine which states would be most affected by the current shutdown, our analysts dug through SBA statistics dating back to 2010 to rank states where SBA loans have had the biggest impact. We measured impact based on the number of loans issued, the cumulative sum of the loans issued and the total number of jobs supported by 7(a) loans.

  • California

    • Approved SBA 7(a) loans rank: 1
    • Number of SBA 7(a) loans issued rank: 1
    • Jobs supported by SBA 7(a) loans rank: 1
  • Texas

    • Approved SBA 7(a) loans rank: 2
    • Number of SBA 7(a) loans issued rank: 2
    • Jobs supported by SBA 7(a) loans rank: 2
  • New York

    • Approved SBA 7(a) loans rank: 5
    • Number of SBA 7(a) loans issued rank: 3
    • Jobs supported by SBA 7(a) loans rank: 3
  • Florida

    • Approved SBA 7(a) loans rank: 3
    • Number of SBA 7(a) loans issued rank: 5
    • Jobs supported by SBA 7(a) loans rank: 4
  • Ohio

    • Approved SBA 7(a) loans rank: 7
    • Number of SBA 7(a) loans issued rank: 4
    • Jobs supported by SBA 7(a) loans rank: 5
  • Illinois

    • Approved SBA 7(a) loans rank: 6
    • Number of SBA 7(a) loans issued rank: 8
    • Jobs supported by SBA 7(a) loans rank: 7
  • Michigan

    • Approved SBA 7(a) loans rank: 9
    • Number of SBA 7(a) loans issued rank: 6
    • Jobs supported by SBA 7(a) loans rank: 6
  • Georgia

    • Approved SBA 7(a) loans rank: 4
    • Number of SBA 7(a) loans issued rank: 12
    • Jobs supported by SBA 7(a) loans rank: 9
  • Pennsylvania

    • Approved SBA 7(a) loans rank: 11
    • Number of SBA 7(a) loans issued rank: 9
    • Jobs supported by SBA 7(a) loans rank: 10
  • Minnesota

    • Approved SBA 7(a) loans rank: 16
    • Number of SBA 7(a) loans issued rank: 10
    • Jobs supported by SBA 7(a) loans rank: 8

States Least Affected by Shutdown

We also found the states in which businesses would be the least affected. States where SBA loans weren't as prevalent would rank higher on this list.

  • Wyoming

    • Approved SBA 7(a) loans rank: 49
    • Number of SBA 7(a) loans issued rank: 50
    • Jobs supported by SBA 7(a) loans rank: 50
  • South Dakota

    • Approved SBA 7(a) loans rank: 46
    • Number of SBA 7(a) loans issued rank: 48
    • Jobs supported by SBA 7(a) loans rank: 49
  • West Virginia

    • Approved SBA 7(a) loans rank: 47
    • Number of SBA 7(a) loans issued rank: 46
    • Jobs supported by SBA 7(a) loans rank: 47
  • Delaware

    • Approved SBA 7(a) loans rank: 44
    • Number of SBA 7(a) loans issued rank: 47
    • Jobs supported by SBA 7(a) loans rank: 48
  • Arkansas

    • Approved SBA 7(a) loans rank: 43
    • Number of SBA 7(a) loans issued rank: 49
    • Jobs supported by SBA 7(a) loans rank: 46
  • Vermont

    • Approved SBA 7(a) loans rank: 48
    • Number of SBA 7(a) loans issued rank: 44
    • Jobs supported by SBA 7(a) loans rank: 44
  • North Dakota

    • Approved SBA 7(a) loans rank: 45
    • Number of SBA 7(a) loans issued rank: 45
    • Jobs supported by SBA 7(a) loans rank: 45
  • Hawaii

    • Approved SBA 7(a) loans rank: 50
    • Number of SBA 7(a) loans issued rank: 40
    • Jobs supported by SBA 7(a) loans rank: 43
  • Montana

    • Approved SBA 7(a) loans rank: 39
    • Number of SBA 7(a) loans issued rank: 41
    • Jobs supported by SBA 7(a) loans rank: 42
  • Maine

    • Approved SBA 7(a) loans rank: 42
    • Number of SBA 7(a) loans issued rank: 39
    • Jobs supported by SBA 7(a) loans rank: 40

See Where Your State Ranks

In our analysis, we examined the sum of the 7(a) loan amounts, the number of SBA 7(a) loans issued and the number of jobs supported by each loan, by state, since 2010. Larger states like California, Texas and New York all have significant SBA 7(a) activity and are the most likely to be negatively impacted by the shutdown, since 7(a) applications aren't being processed. Wyoming, South Dakota and West Virginia have seen the least amount of SBA activity and the least likely to be affected by the government shutdown.

StateAggregate RankSum of Approved LoansNumber of Loans IssuedJobs Supported
AK46434946
AL34283534
AR38344241
AZ16151813
CA1111
CO15121515
CT24272425
DE47444748
FL4354
GA84129
HI43504043
IA27333127
ID31362533
IL6687
IN17171618
KS27313228
KY27352729
LA30293330
MA1421712
MD23232322
ME41423940
MI6966
MN1016108
MO20182019
MS32302837
MT42394142
NC18141920
ND44454545
NE37373731
NH36402636
NJ13101316
NM40384339
NV35323432
NY3533
OH5745
OK26263024
OR22222223
PA911910
RI38413838
SC33253635
SD49464849
TN25242926
TX2222
UT18191717
VA21202121
VT45484444
WA1281414
WI11131111
WV48474647
WY50495050

Methodology

Our findings are the result of data provided by the SBA dating back to 2010. We chose to limit our findings to 7(a) loans, as these are the most popular financing tools the SBA provides.

Justin Song

Justin is a Sr. Research Analyst at ValuePenguin, focusing on small business lending. He was a corporate strategy associate at IBM.